RIKSBANK: Few Revelations In Monetary Policy Update; Focus On Press Conference

May-08 07:48

There aren't any huge revelations in the Riksbank's Monetary Policy Update that weren't outlined in the policy statement (some highlights below). For now, focus turns to Governor Thedeen's press conference at 1000BST/1100CET.

  • "According to surveys, household confidence has fallen significantly, while business confidence is relatively unchanged so far. Anecdotal information, including interviews with businesses, suggests increased pessimism among businesses too. The generally increased uncertainty is also expected to contribute to lower exports and investment"
  • "The weaker growth prospects risk leading to slightly higher unemployment in the period ahead than was in the March forecast"
  • “In March, the Riksbank identified a number of factors that are expected to mean that inflation will be above 2 per cent this year before falling back”…” The inflation prospects for the rest of the year from the March report are largely expected to remain unchanged”.
  • “New agreements suggest wage increases broadly in line with the previous assessment”…”This is not assessed to change the inflation outlook to any great extent compared with the forecast from March”.

Historical bullets

EQUITIES: FTSE Block trade

Apr-08 07:46

FTSE block trade, suggest seller.

  • Z M5 2k at 7785.00.

US TSY FLOWS: US Tnotes is through the Overnight high, USDJPY tests 147.00

Apr-08 07:42
  • The US Tnotes is now also through its overnight high, but initial resistance area is seen further out up to ~112.24+
  • The price action is helping the USDJPY through the 147.00 figure, this is well within Yesterday's big range of 144.82/148.18 (low/high).

BONDS: European futures are extending higher

Apr-08 07:36

Couple of Block trade in Gilt, suggested buyer:

  • G M5 1.22k at 92.21.
  • G M5 976 at 92.25.

The Italian BTP and French OAT futures are still leading to the upside in Europe.